We are certainly living in 'interesting times'. As investors, we can either 'panic' or view them as an 'opportunity'.
I view the April 2 tariff announcement as an 'opportunity'. A HUGE segment of the global population is, unfortunately, going to be in a 'world of hurt'. The same applies to a great many companies whose business model has been 'turned on its head'.
Some companies with a promising future, having encountered a 'speed bump' or 'pothole', may be unable to turn to conventional forms of financing to help them 'weather the storm'. They may need to seek financial assistance from companies with very 'deep pockets'.
Enter....Blackstone (BX) and Brookfield Corporation (BN.to).
In several prior posts, I recommend we 'follow the money'. In essence, how are the 'wealthy of the wealthy' deploying their money?
The asset management space is highly fragmented and industry consolidation is inevitable; many industry participants should not even be in business. The enviable reputation established by BX and BN.to, however, places them in an enviable position.
Both companies expect 'credit' will be their fastest-growing business over the next several years. With billions of cash awaiting deployment, I envision them being a 'lender of choice'. Their 'cast-offs' will likely need to turn to 2nd and 3rd tier asset managers.
Final Thoughts
When I completed my 2024 year-end portfolio review, BX was my 8th largest holding and the Brookfield group of companies was my 16th largest holding. I have subsequently made changes to my holdings but am reasonably confident they remain top 20 holdings.
Given my take on the current business environment, I acquired another 500 Brookfield Corporation (BN.to) shares @ $72.057/share and another 300 Blackstone (BX) shares @ $135.0146/share in a 'Side' account within the FFJ Portfolio on April 3.
I wish you much success on your journey to financial freedom!
Note: Please send any feedback, corrections, or questions to [email protected].
Disclosure: I am long BX and BN.to.
Disclaimer: I do not know your circumstances and do not provide individualized advice or recommendations. I encourage you to make investment decisions by conducting your research and due diligence. Consult your financial advisor about your specific situation.
I wrote this article myself and it expresses my own opinions. I do not receive compensation for it and have no business relationship with any company mentioned in this article.
